Comments on the Market by Mr. Kiran Kumar Kavikondala, Director & CEO, WealthRays Securities

Sensex gains on strong Asian markets; Metals shine

“Indian equity markets were up today as global sentiment remained positive. Asian markets were up today but Nikkei gave up gains after a possible Ebola case emerged in the country. PBOCs decision to change loan to deposit ration calculation in order to boost liquidity in the economy lifted metal stocks. Metal stocks rallied lifting the index. On the other hand, Rupee continued to remain weak against the greenback keeping banking shares under pressure and capping gains on the benchmark. European shares traded mixed weighing on the index further. With some recovery in global oil prices energy stocks were also up along with IT stocks which took cues from weak Rupee and strong close on US NASDAQ in previous session. PMI manufacturing data to be released this week will be eyed for cued on IIP data to be released later this next month.” , Mr. Kiran Kumar Kavikondala said.

Indian Markets

Indian equity markets were up today as global sentiment remained positive. Asian markets were up today but Nikkei gave up gains after a possible Ebola case emerged in the country. PBOCs decision to change loan to deposit ration calculation in order to boost liquidity in the economy lifted metal stocks. Metal stocks rallied lifting the index. On the other hand, Rupee continued to remain weak against the greenback keeping banking shares under pressure and capping gains on the benchmark. European shares traded mixed weighing on the index further. With some recovery in global oil prices energy stocks were also up along with IT stocks which took cues from weak Rupee and strong close on US NASDAQ in previous session. PMI manufacturing data to be released this week will be eyed for cued on IIP data to be released later this next month.

Other Asian Markets

Asian markets closed mixed today with Nikkei giving up gains as a possible Ebola case emerged in the country. Nikkei closed down by 0.5% in the session. Data for manufacturing early next year was awaited meanwhile SSE and HSI gained with SSE rallying .33% on PBOC decision to change rules of calculating loan to deposit ratio for banks. Other Asian markets remained with positive bias today.

Commodity Outlook:

Gold and silver futures contract were hit by profit taking in today’s session after a rise over 1% on Friday’s session. However, Asian, U.S. and domestic equity indices were seen up led to fall in bullion. Energy contracts were trading mixed value buying was seen in natural gas contracts. Similarly base metals were seen trading mixed with weak biasness. Positive Asian indices led to weakness in metal space.

Evening outlook:

Bullion is expected to trade with negative bias and expected to see a further dip; Energy could be seen gaining some momentum with positive move. Base metals are expected to trade flat with negative bias.

Stock Recommendations:

Axis Bank - Sell at Rs. 494.10(CMP); Target –Rs. 490.00; Stop Loss –Rs. 498.00

Infosys - Buy at Rs. 1957.80(CMP); Target –Rs. 1980.00; Stop Loss –Rs. 1935.00

Reliance power - Buy at Rs. 61.8(CMP); Target – Rs.62.50; Stop Loss – Rs. 61.00

Sectors Snapshot

Bank Nifty: Banking stocks witnessed capped gains today. Asian markets were positive but the strength in the greenback continued to weigh on banks. Also, IIP and inflation data expected next month was awaited by participants. ING strike for job security also induced negative pressure on banks today.

CNX IT: IT stocks were up today with major stocks lifting the index. Export oriented IT stocks were up today as buying was seen after recent sell off and as Rupee remained under pressure against the greenback. Mid cap stocks also witnessed some recovery today leading IT index.

CNX Energy: Energy space was seen up in today’s session. Index marginally opened higher due to rise in crude price and is seen sustaining above 60 levels. Major oil production companies were seen up. Cairn Indian and Power Grid Corporation were only losers.

CNX Pharma: Index opened higher tracking positive cues from global markets and continued to trade in positive with Lupin being the major gainer after company replied for the clarification sought by the NSE followed by Aurobindo Pharma. Cadila Healthcare was the only loser among the index.

Market Movers

Gainers

Asian Paints: Post huge correction this month, Asian paints was the top gainer on account of value buying at lower levels.

SSLT: Shares were up on reports that PBOC will change rules governing loan-to-deposit ratios to be imposed from next year.

Losers

PNB: PSU banks were seen weak in today’s session due to fall in rupee weighing pressure in banking space. PNB was the top loser among Nifty constituents

Cairn India: Shares of the company bucked the trend and fell in today’s session due to profit taking and fell more than 2%.

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